Union & Management Structures

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1 Union & Management Structures Most slides provided by and adapted from Katz & Kochan, 2004

2 Union Growth and Membership Characteristics Union membership peaked in the mid-1940s at around 35 percent By 1960, membership had declined to 31 percent of the nonagricultural labor force New York and Michigan had the highest union densities, with 25.5 percent and 24.8 percent North and South Carolina had union densities of 3.6 percent and 4.0 percent respectively

3 Union membership as a percentage of the nonagricultural labor force,

4 Explanations of Recent Union Declines Changes in the nature and location of jobs have hurt union growth Jobs moving away from the east and west coasts, and north-central regions where unions have been historically strong Statistics suggest that 40% of the decline in union membership in the past 30 years can be explained by region, industry, and occupational characteristics

5 The Structure of National Unions National unions are the center of political power within most trade unions in the United States They are actively involved in the negotiation of collective bargaining agreements They sanction and provide assistance to their member local unions

6 The Governance of National Unions National unions are typically governed by a constitution and bylaws Commonly there are annual and biennial conventions in which officers are elected and bylaws modified Officers typically include a president, secretary-treasurer, vice presidents, and an executive board Staff helps in negotiations, organizing, grievance administration, research, and governmental affairs

7 The Local Union For most union members, the most extensive interaction is through the local union Workers can attend union meetings and vote for local union officers Locals initiate grievance processing and direct strike or picketing activities If the local union is not linked to a national union, as in the case with some small manufacturing companies, the local union negotiates a collective bargaining agreement on its own Local contracts might include work rules and seniority rights, while the national contract covers wage increases, fringe benefits, and procedures

8 Union Avoidance through Employer Election Campaign Practices Management has become more sophisticated and has increased resistance to union organizing Click Here Substitution through HR practices Government substitution Union corruption and resistance to change

9 Trends in Management Policies toward Unionization In the majority of nonunion, avoiding unions is a top priority Organized firms tend to be less strongly opposed to unionization of new plants, provided economic and labor relations experience with present unions has been relatively favorable Firms are strongly opposed to organization of white collar employees, regardless of experience with blue-collar workers Adapted from Katz & Kochan, 2004

10 1. The Paternalistic Pattern Personnel policies tend to be informally administered and involve substantial discretion by operating managers Example: May not have a formal leave policy, but grant leaves on case-by-case basis Mangers exercise high degree of discretion over discipline and pay policies Adapted from Katz & Kochan, 2004

11 2. The Bureaucratic Pattern Realize that variation of policy can cause unionization if some employees feel disadvantaged Find it necessary to standardize and bureaucratize policies Bureaucratic pattern is characterized by highly formalized procedures on policies such as pay, leaves, promotion, and discipline Uses detailed job classification and evaluation Adapted from Katz & Kochan, 2004

12 3. The Human Resource Management Pattern Relies on formal policies, but policies that are different from the bureaucratic pattern Policies such as team forms of work, skill or knowledge based pay, elaborate communications and complaint procedures Until the late 1980s, firms practiced employment stabilization; downsizing in 1990s ended this practice Companies with sophisticated personnel systems are likely in high growth areas with skilled employees Adapted from Katz & Kochan, 2004

13 Increased Union Suppression There is evidence that union suppression tactics have increased in the past 30 years: Employees illegally discharged by employers during organizing campaigns increased tenfold from 1960 to 1975 and remained high during the 1980s and 1990s Management s use of suppressive tactics against union activists is not merely an artifact of the pre-new Deal labor history, but a significant feature of contemporary industrial relations Adapted from Katz & Kochan, 2004

14 Expansion of Double Breasting Where unions lacked the strength to engage top management, double breasting could take place: After becoming dissatisfied with the current union, managements would build new, nonunion plants or work with different unions in a new plant In a typical double-breasted construction company, the commercial end would be unionized while the residential side would be nonunion Adapted from Katz & Kochan, 2004